Spain tax rate - Doing Your Income Tax Return in Spain

The Spanish tax return system is very complicated and obscure, and can be a big challenge for expats and foreigners living in Spain. There are exemptions in the personal income tax and also double taxation agreements that can benefit non-Spaniards living in Spain.

What is Spanish tax return and who must file it if I live in Velez-Malaga, Nerja or Torrox?

In general terms, if a person living in Spain for 183 days or more in a year, they are considered a taxpayer in Spain. Therefore they must submit a Declaración de la Renta or yearly Spanish tax return. If the person travels and resides in different countries during a year or obtains benefits in several countries, he/she is subjected to the existing international Tax Treaties.

In the particular case of Spain, you need to present a Spanish tax return if you make more than €22.000 a year from a single source. If you receive income from more than one source, you must submit a Spanish tax return if you make more than €12.000. The situation is similar when you obtain benefit from a foreign source, even if it is less than €22.000. In that case, it is advisable to submit a Spanish tax return.

Double taxation agreements

If you find yourself in the situation of obtaining benefits or earnings in a country that is not your country of origin, you may need to pay taxes in both countries. To avoid these situations, many countries have signed bilateral double taxation agreements. These agreements allow the taxpayer to pay only in the country where he/she resides or to obtain foreign tax credit in the country of residence.

In order to benefit from the double taxation agreements, the person must prove him/herselves as non-resident in the foreign country where he/she obtains benefits. These double taxation agreements are also very useful to prevent tax evasion, as both countries interchange taxpayers’ information and investigate abnormal situations.

Main Innovations Income Tax Campaign 2016.

Without a doubt, this year the campaign to file the income tax return 2016, which takes place from April 5 to June 30, comes with an important novelty: the disappearance or definite elimination of the Padre program and the final establishment of the Renta Web platform. Said program had already begun to work last year serving taxpayers, except autonomous workers and entrepreneurs, but this year is available to all citizens.

With the implementation of this new platform, the Tax Agency prepares the “big digital leap” at the time to fill out the statement. You can read more information about income tax return, residence and other tax obligations in our blog.

The program Renta Web will expedite the process:

You can have access from the electronic webpage of the Tax Agency.

The taxpayer only needs to identify himself/herself (electronic DNI, password and reference number).

Once you are logged in you will be informed of the “possible existence of differences between the data registered in the last statement and existing data in the system,” so you will have to validate the data identified. Therefore, this new way to file the income tax promises to be easier, warning about any missing data.

The taxpayer won’t have to download information from the draft or from the Padre program, which in turn will expedite the process, allowing to file the statement from a mobile or tablet.

The agility of the program Renta Web was already tested in 2014, as a pilot test in at least half a million statements (on-site).

Another novelty for the process to file the 2016 statement is that it will allow the “request for rectification of tax self-assessment.” That way, you can make corrections though you own statement if there are “mistakes or omissions that establish a higher reimbursement or a lower income.” If the taxpayer selects the box to request the rectification available in the model itself, “the statement works as an application letter to request the rectification of tax self-assessment.”

On the other hand, the documentation necessary for this step can be presented “though the electronic registry of the Tax Agency or through the onsite registration of said entity.”

This year, the models 121 and 122 were approved for deductions in the case of large families, with members with disabilities who are heads of households “or ascendants with two children, who are legally separated or without marital bonds.”

The program Renta Web is available to file the statement both in offices or through the Internet. It is worth mentioning, that the IRPF (Income Tax Return for Individuals for its acronym in Spanish) can be filed in person, but you must wait until May 11 to do that. Regardless of the method you chose, the deadline to do it is June 30.

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If you must perform cadastral procedures, or need to get a driver’s license, register a property as a seasonal rental, calculate your taxes or donate a property in Malaga do not hesitate to hire real experts, who will efficiently help you to sort out all these formalities and many more related to legal and accounting services in Málaga.

After all, this city belongs to the autonomous community of Andalusia where some important tax regulations have been recently approved.

Do not be surprised by the adjustments made and ask for help to know the decree that regulates rental housing for tourism purposes, which now must be be registered before the Tourism Registry to be incorporated into this market. If you live in Malaga or offer this service in this city, you will surely be interested in learning about these and other regulations to avoid offering clandestine alternatives outside the law.

It is important that you also know the new conditions for inheritances in Andalusia, whose ceiling exempt from paying taxes was raised by the Board to one million Euros, only in case of inheriting assets from a direct relative (spouse, children, grandchildren and parents).